Payment for Ecosystem Services
The concept of Payment for Ecosystem Services is an economic tool which aims to support and
maintain the fl ow of a specifi ed ES in the long-term, in exchange for something of economic value.
According to S. Wunder (2005) PES is «a voluntary transaction for a well-defi ned environmental
service (or a land use likely to secure that service), purchased by at least one environmental service
buyer from at least one environmental service provider, if and only if the environmental service
provider meets the conditions of the contract and secures the environmental service provision».
Often, an intermediary organization plays an important role in the collection and redistribution of the
fund. It also coordinates the different assessments, meetings and the negotiation. This organization
plays a crucial role in the sustainability of the entire scheme as if the transaction costs are too
important, the entire system can collapse.
Thus, from this defi nition, the main conditions for the relevance of a PES project are (S. Wunder,
in Getting started – a Primer, 2008):
Applications of PES
Current PES schemes focus on water, carbon, or biodiversity and respond mainly to public,
but increasingly also to private interest in addressing an environmental problem through positive
incentives to land managers.
So far PES schemes have been developing mainly around three groups of environmental
Summary of recommendations for PES in the Republic of Kazakhstan
The relation between buyers and sellers is established in the PES contract which is negotiated
between buyers and sellers. This document presents:
As explained before, the PES gives rise to a payment. The characteristic of this payment, i.e. its
nature and frequency are decided during a negotiation between buyers and sellers and depending
on their needs and wishes, it can be both cash and in-kind payment. In-kind payments can be
material such as roads repairing, beehives furniture, seed distribution for reforestation and different
incentives that can diversify the incomes of those who are involved.
Different types of contract
Different types of stakeholders can operate as buyers, sellers or intermediates in the frame
of a PES scheme. Broadly, these stakeholders belong to the public or the private sector. Thus
depending on the nature of the organizations or people concerned by the payment fl ow, the common
classifi cation on PES proposes three different schemes: